New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-12-31
GOULD, SAGE AND THE BONDS
NIX. MARITIME SAYS THE TWO MEN SHOULD
BE INDICTED FOR LARCENY.
ChAB"Es MADE By KANSAS PACIFIC BoNDHoLDERs
-IhE TROUBLE GROWS OUT pF THE OLD
CONSOLIDATION - MR.. GOULD IS
ABROAD AND MR. SAGE


against Jay Gould and Russell Sage
and he decided yesterday that the c,se
was for the consideration Of the
Grand Jury The charges grew out of the act.
of Messrs. Could and Sage trustees for the Kane
saS Pacific bondholdcrs in 1879 and $50. Whcn
the charges were first made, Mr.. MARITIME was @!
the opinion that the law requiring an indictment
to be found within five years Of the commission
Of the crime would prevent any action. Will
ian III. Delaney, the lawyer who made the
charges argued however, that the law forbddins
the Withholding of a trust fund by the trus-
tees continued to operate So long the tlist
! fund was not restored
TuE DI>IRICT-AITORNEy's MEMnRANDCM.
Mr.. MARITIME in memorandum flied with Chief
Clerk Parker, III the Gould sage ease yesterday,
said:
Jury charge OF larceny against Jay Gould ami RS
! sell sage uu ici >cctlor al Ol the ltuai Conc
In ny opinion. ih, acts WEh The commission 81
which the defcnlant5 ac charged constitute cine
a ,,blc obstacle 20 succ'>stul prosecution OF The
Icrs0n, compiiined OF Is the stauio OF llmatl'li'
Yet, ttcre are strong reasons Tor believing ihdt tH'
! obstacle IS not in,urmouniate. The sta'uic u'der
which ii IS sought to prosecute may be 50 coushn
| a. 20 enable tho people to proceed nWwlh,ia'H
the statute OF limitations. ard such cOnst ucilon W0do
have much support In reason ana common sense, lh'
question is close and tho interests Involved hIr'
weI OF the people Of the defend ants arc so I'M
portant, that seems proper to leave he dhemna ot
OF this question to the courts ahd IA 9,aet 10 %
Jury, and. II proven. an indictment found ana treh
THE CHARGES OF THE BnNDnOLDER~.
Mr.. Dclancey representing some Of the Kansas
Pacific bondhoders, has made several arguments
urging action by Mr. MARITIME. The facts Oh which
he relies to make out a case against Messrs Gould
! and Sage are in substance that Jay Could ana
| Russell Sage became trustees May |, 1879, Of
about 80, 900 shares Of Denver Pacific Railway
and TELEGRAPH stock under deed of trust from
the Kansas Pacific Railway Company for the bene-
! nt OF the holders Of its consolidated bonds. Inc
! testimony taken before the United States racine
J Railway Commission is relied on to a great extent
! to show that there was msappfoprialoh oL VIC
/ Denver Pacific stock by McssGs. Gould ana Sage
/ The complainaatS allcgc that on January II, lSoV
I n mcmoranduln ot an agreement was signed dD
/ the house Of Jay Could providing tOi th9 cor
/ sohda,ion Of the Union Pacific and Kansas Paclhc
companies with tn" Denver ldcHc III lni> 'ii' iii"
/ rondum il was stated that the proceeds oi thc
/ Denver Pacific stock held IN trust were 10 De 'a,u
| fer the benefit Of parties. ne comfi%!l""'1 ~
ulcge that the parties are JAY GouId ana l'u's-A
The proceeds Of the stock were, it is charged
oppronriatci by Gould and sage within ten o"|o
! from the date of the memoi"hdunl' unou@n u
| scheme to ob-ain an Order from couit, uhHef
| cover cs which tbe trustees cou!d act ,,.oli.,
! Tho Kansas Pacific Company then controi'o
II i nilerrl by JAY Gould WrOte 70 tlc trustees
asking TO nave the trust stock ne trustee re- re-,
| rlicd that " It. might be open to SOM aodpb
whether ,hcv had power 10 comply with tAr re-,
Y,,,t without an order from court They a+'cfi
! not 20 throw obstacles in the way 0i an oi''''
A prCkFE or IHE sCi RENE CotEr OBTAINED.
4 summons and complaint were served ana IN
answer made on the same day. y decree oil ihe
Suprcine Court Of Ncw-lorl was obtained On
.January 23. 1850, allowing the trustees to de-
liver the stock to the debtor company. The tra'b
.tccl, il is alleged was taken and its proceeds IN
J-ulon Pacific Railway stock valued at s3'uOOoup
| delivered Ia JAY Gould. The complaihahtS uS-
c,arr That the stock with the Union Pacific stock
| ard lie dividends and interest amount to apouV
] :. .Duo. 900 Mr. Delaney aeucs that aS no m
q tsfI
49, 20 she consolidation which would m"h' llH
D,uV,r P1nfr stock previously "l "''i' r",I',
I s.il,nlv valuable. the transfer OF the STOCK vas
"a ,,rt If a fraudulent scheme and WAS sortciinS
Of the Trust Funds hy the trustees. ,.i.. ,....
The section under which the Complain ""'
| made provide, that any trustee VINO >'cr'r1 g.,
,,-,fi, holds trust funds j. guilty OF larceny ana -
Liable not only - the pnni,hmcnt Tor u 'il'.
Inn "a a fine for the benefit OF the persons h. 'lhE
q ri III 80 ,he trust funds The fue may b" -
/ N.e f,il value of the proporiv appropriat"c N.il
interest. oni an add i'nal am. mn ol lW'm.' M
cent An ld '.onal term Of lmprsohih'h III nay
al>D hc imposed.
W.. GorLp WAS ALLOWED TO co IN PEACE
when .,..l crtangl,mcntS growing ont OF th'
Kansas p,r.ic Trust business Threatened To "'i'y
Law Gon.d's departure Tor Europe nearly tvo
month, 40 Almon Gooi"in went before INC
Di>tr t-httorucy ard urged tie statue 'i "'"'-
tatiors e,a,c.i>c,y that tie great hn3nc'r ta'
Sao4yia ",SEsi IS 50 maoaber Of the fir q
y4adS'r22oL Wan s' 2o Wa 1S st. AMY, good Iam I'd >
W. WN,.' GooG,cir AID when p reporter of "a .eiB-
rNE sGnght hm ~, T5' ny. wo.t ~ Fl Flfi%y-nlria % -
h, readily consented to talk about 'ic '"'c'' ''
! opmrntS .,r. - ,1,..,, .,,
NOR. Nr i.s. mtolvcd IN various llieation- ..d
thc, ,g,rr also full, brou ht TO light heio'r iHn
| Pacific Railroad Commi.>l"n Wh.h, lHI -
ZION, which II soat,-od con>t itutcd "a hlr.t" 81
mast Ncrr stated by the parties involved 1.''r
! tle rartlr, concerned IN the cons 'hl,t,l h"h"'S
/ p,cif. ariarecmout nor their counsel haNr yer
considered That there was ANYTHING crmin'l W. 'ne
rro..,..in.. A. matter of tart, what WAS doha
VAS for i. interest of all parties concerned tnrc-
| rIl cN .l0iuation vas made when the MAJ, 'r NaS
! before Mr. MARITIME some weeks ago he thcn
stated that tine first question 10 bc consider '';'s
,.Icfher hc lad any jurisdiction in the ease. mas
much 20, on the face Of it the statute of limitations
,cemcd to cover - if1y ig1i5 'I Iim ' 81"
/ lint roint hy myself. which showed that TIE Stat
utr OF limitations did run No are"mcnt ir1m oHr
side has ever been made before h'm coiceth.ne no
general merits ol the ease ", ,fr,incd iI'm hat
Aipnly tu save time. bccIuN' III Honll M.,N any,
, ions 80 cct away and the statute ot limitations
| s.a,n,d Sufficient to settle the mgttcr. I'm THIS
opinion some OF the abicst counsel IN N'@-lorS
This ,nattcr has been BROUGHT forward in the
District Attorney office on behalf OF parties who
are prosecuting Il civil suit. Such Snii was l eun
! last October. | think, bur was dlS'ohtllH%
! tbr attorney fer tie plaintiff stating that no
| had received cabl" Instructions from Am>'"r,hm
to discontinue the suit 1t Is IN Am>crdam 'I,e ,ii
| the PARTY behind his suit can't now recall tho
uamc-reSideS :, 80
Mr. Adams, President OF ne mon isclns l,n,
has cyurcsscd himself strongly as 10 The dyaniagrs
! =" ,be is concerned resulting from the consOl
idation Probably Mr. Gould will return when
thc cold weather is over, sooner, II necoSSary
! of his vo,t may bc certain. Mr. Gould and Mr.
Socc viii both he ready 10 respond 10 any charges
| mndc against them in the courts civil or crIm:
| inal'
RUSSELL SAGE Knows NOTHING ABorr 1T.
| ct know nothing about the matter exclaimed
pusseu Sage exctcdly, when a reporter called on
b,m last night and briefly stated the object OF
his visit See the lawyers about IT, They are
paid to know something about 1t and It's hteir
| business to talk about it ~ ~.
clnb have nothing to say about the matter
he said. ." expected that it would go to the
Grand jury .,,. ,,,. ro,
would at least express some satisfaction at IT.
| said the reporter. nj, .,.,